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By Boyan Angelov
Nov 28, 2014

The Pump For Ubiquitech Software, Corp. (UBQU) Pays Off

Ubiquitech Software, Corp. (UBQU) was the target of paid promotions earlier this week. On November 25, campaigns were carried out by stock promoters Penny Picks, Penny Stock Newsletters, Damn Good Penny Picks, Prepump Stocks, BeatPennyStocks, and PennyStock Buzz. The parties received a compensation of $14 thousand from an entity called ACN, LLC for the distribution of emails, promoting UBQU stock.

The results from the pump campaign were evident on the next day, as UBQU registered a 52-week high with a volume of 3,471,943 shares trading hands. This amount was nearly three times higher than the previous record for the past year. Ubiquitech Software reached a $171 thousand trade value on this record amount.Ubiquitech Software, Corp. stock chart

The increased demand for UBQU stock should by no means be relied upon as an indicator of the stock's value under these circumstances. Paid promotions usually aim to increase the price of a certain stock momentarily and profit from the short sales. Though UBQU stock has not marked a significant increase in price as of yet, we cannot tell what the goal of the promotion is and what the outcome of the campaigns will be.

Ubiquitech Software has yet to address the promotion activity. We are yet to find out where the company stands for these campaigns. The input we have on UBQU which can be relied upon is the venture's official financial statements. The latest quarterly report submitted by the company for the period ended August 31, 2014 contains the following information in numbers:

  • Cash: $92.9 thousand
  • Total current assets: $92.9 thousand
  • Total current liabilities: $4.9 thousand
  • Revenue: $379.9 thousand
  • Net income: $39.1 thousand

The company has managed to raised a certain sum of cash, which is still quite exiguous. To UBQU's credit, the company has been able to improve its sales through the past three quarters. As a result, the venture managed to end the period at an income.

UBQUA red flag around UBQU is the increased share issuance. As of August 31, the company had 48,058,000 shares of common stock outstanding with 50 million common stock A/S. Doing the math, in the past year the venture has issued a total of 33.5 million shares of common stock and is now alarmingly near the limit of its authorized shares. It should also be noted that the increased share issuance raises the risk of dilution of UBQU stock.

Doing due diligence on Ubiquitech Software before investing in the company may be the wisest course of action at this stage.

Average Reader Price Target For UBQU:

Going Down!

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